Know your Bad Customers
November 6, 2009 
1 Comment
If you are starting a business or have run a business online and you take payments from customers, this is a tip that you need to listen to. There are many bad customers out there that do not wish to pay for the goods that you provide or they are not financially able to do so. This is where the dreaded chargeback comes in. For those who do not know about chargebacks, it is the ability of the customer to reverse the charge with their credit card company, which puts you at risk of losing the money from that sale. The worst part is, if a customer does a chargeback for an item that they already received, then you not only lost the item, but you could lose the money as well. It is easy for customers to chargeback purchases, but it is hard for retailers to fight the chargeback.
Well, if you are about to start or have already battled the chargeback, there is a relatively new service out there for retailers that will help reduce the risk. Badcustomer.com is a free service to retailers if they qualify, that has a huge database of over 6 million customers and their risk assessment. About 300 retailers put information into the database and if you integrate your order process with badcustomer, you can get flags for customers that have a high probability of chargebacks. This can save you thousands of dollars or more because it is a tedious process that you will usually lose. We just wanted to let you know about this service because it will not only help you recoup the possible loses, but it will slow these bad customers down from doing it at other retailers.
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This looks like a good service. I have been battling chargebacks for years. Hopefully I can get my site into this program and integrated so we can reduce the losses. Thanks for the info!